A Holistic Look At Norcros plc (LON:NXR)
Attractive stocks have exceptional fundamentals. In the case of Norcros plc (LON:NXR), there’s is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Norcros here.
Undervalued with adequate balance sheet
NXR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that NXR has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. NXR appears to have made good use of debt, producing operating cash levels of 0.24x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. NXR is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if NXR’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of GB companies with similar levels of earnings, NXR’s share price is trading below the group’s average. This bolsters the proposition that NXR’s price is currently discounted.
Next Steps:
For Norcros, there are three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for NXR’s future growth? Take a look at our free research report of analyst consensus for NXR’s outlook.
Historical Performance: What has NXR’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NXR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
